The Government of Bangladesh has allocated Tk 525.46 crore to Beximco Group to settle the dues of terminated workers from its closed textile and garment units.
At a ceremony held at the Ministry of Labor and Employment, Labor and Employment Secretary AHM Shafiquzzaman handed over a cheque for the allocated amount to Beximco Group’s Managing Director, Osman Kaiser Chowdhury.
This financial support will be used to pay the salaries and dues of workers and officials from 14 textile and garment units that have ceased operations. Initially, the government had planned to allocate Tk 325.46 crore from the finance division and Tk 200 crore from the labor ministry’s central fund. However, the decision was revised as the central fund consists of workers’ contributions, leading to a full disbursement from the finance division instead.
31,669 Workers and 1,565 Officials to Receive Payments
According to M Sakhawat Hussain, Adviser for Labor and Employment, the financial allocation will cover the payments for 31,669 workers and 1,565 officials. These payments are being provided as a loan to Beximco Group, which it will be required to repay to the government after a certain period.
The initiative was taken to prevent labor unrest in the garment sector ahead of Eid-ul-Fitr, following the terminations and outstanding wage payments. The disbursement of payments will begin on March 9, covering salaries up to February.
14 Closed Units to Receive Financial Support
The payment will be made to workers from the following 14 closed units:
- Bangladesh Export Import Company (Head Office)
- International Knitwear and Apparels
- Crescent Fashion and Design
- Esses Fashions
- New Dacca Industries
- Escorp Apparels
- Bextex Garments
- Yellow Apparels
- ShinePukur Garments
- Beximco Fashions
- Prefix Fashions
- Crescent Accessories
- Urban Fashions
- RR Washing
Current Status of Beximco’s Operational Units
At present, only four Beximco Group units remain operational:
- Bangladesh Export Import Company (Factory)
- Beximco PPE
- Escorp Apparels (Yellow Local Brand)
- RR Washing (partially operational)
Beximco’s Financial Liabilities and Government Plans
Beximco Group has outstanding loans from 13 banks, including Bangladesh Bank, amounting to over Tk 40,000 crore. The breakdown of major dues is as follows:
- Janata Bank: Tk 23,285 crore
- Sonali Bank: Tk 1,424 crore
- Rupali Bank: Tk 987 crore
- Agrani Bank: Tk 420 crore
- United Commercial Bank: Tk 333 crore
- National Bank: Tk 315 crore
- AB Bank: Tk 938 crore
- Exim Bank: Tk 497 crore
- Dutch-Bangla Bank: Tk 94 crore
- Bangladesh Infrastructure Finance Fund: Tk 87 crore
- IFIC Bank: Tk 78 crore
- Global Islami Bank: Tk 61 crore
The government is considering shutting down the mills and factories permanently before a committee decides on selling Beximco’s shares to recover the outstanding loans.
This intervention underscores the government’s commitment to protecting worker welfare while ensuring financial stability in the garment sector, particularly ahead of a major festival.
